People who are successful are those who have an optimistic attitude, right kind of flexibility in thoughts, a quick learning attitude and emotionally balanced. An emotionally balanced professional has the ability to cope up with uncertainty and imperfection. They are not very judgmental and believe in win-win situation. They like to groom others, respect people and treat others as 'humans'. They have the ability to cope up with all kinds of situation whether it's about managing a bad boss or an undisciplined subordinate or a high demanding job. Also today the definition of leadership has changed in a way that it has become more peoplefocused. A person having a good understanding of EQ can only be a good team player and hence an effective team leader. This paper throws some light on how effective leaders demonstrate EQ and what dimensions of EQ are highly important for effective leadership.